Nalli Sarees
Transcript of Nalli Sarees
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Unit Kanchipuram Silk Benaras Silk Embroidery
Category Role Destination Speciality Speciality
Purchase Decision Hierarchy Flagship Cash Machines Grow Margin
Average Purchase price $ 123.08 110.58 112.5
Average Sale Price $ 162.97 146.42 148.96
Inventory Pieces 970 415 286
Monthly quantity sold Pieces 648 261 187
Shelf space allocated Ft 25 20 15Time spent by sales person No of hrs 3 1 1
Payment terms for vendors Days 30 90 45
Monthly Revenue $ 105604.56 38215.62 27855.52
Monthly Purchase Cost $ 79755.84 28861.38 21037.5
Absolute margin $ 39.89 35.84 36.46
Total Margin $ 25848.72 9354.24 6818.02
Margin % % 32.4 32.4 32.4
Stock unsold Pieces 322 154 99
% shelf space allocated % 20 16 12
Inventory Turnover Ratio Days 44.90740741 47.70114943 45.88235294
Avg Accounts Payable $ 79755.84 9620.46 14025
Revenue/ Shelf space $/ ft 4224.1824 1910.781 1857.034667
Abs Margin/ Shelf space $/ ft 1033.9488 467.712 454.5346667
GMROF $/ft 1368.635098 619.093044 601.679232
GMROI $/ft 1033.635686 467.554356 454.41
51.80653445 18.74731778 13.66520582
Credit 13783.04 7675.08 4319.48
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Cotton Ready to stitch Materials Dhotis
Routine Convenience Convenience Convenience
Cash Machines Grow Margin Core Traffic Grow Sales
14.23 12.98 4.81 12.98
18.84 17.19 6.37 17.19
2860 2222 4650 135
1938 1435 3229 75
30.25 10 20 4.75 1251 0.5 1.5 0
15 15 30 15
36511.92 24667.65 20568.73 1289.25 254713.25
27577.74 18626.3 15531.49 973.5 192363.75
4.61 4.21 1.56 4.21
8934.18 6041.35 5037.24 315.75 62349.5
32.4 32.4 32.4 32.4
922 787 1421 60
24.2 8 16 3.8
44.27244582 46.45296167 43.20222979 54
55155.48 37252.6 15531.49 1947 213287.87
1207.00562 2466.765 1028.4365 271.4210526 2037.706
295.3447934 604.135 251.862 66.47368421
391.0698208 799.23186 333.213426 87.94042105
295.3781078 603.49212 251.610138 66.40294737 498.796
17.91351126 12.09897674 10.08869911 0.6323507
4185.88 4173.91 1797.77 463.05 36398.21
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125
Cost Plus Pricing Scheme
Good Inventory Maintenance
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2010
254713.25
192363.75
62349.5
32,692.33
29,657.17
0.12
to 12%, displaying the inefficient pricing mechanism of constant markup for all products inspite
the shelf in addition to the purchase cost
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Shelf Space Apportioning
Unit anchipuram Silk Benaras Silk Embroidery Cotton
Monthly Revenue $ 105604.56 38215.62 27855.52 36511.92
Monthly Purchase $ 79755.84 28861.38 21037.5 27577.74
Shelf Space ft 25 20 15 30.25
Revenue/Shelf Spa Rs./ft 4224.1824 1910.781 1857.034667 1207.00562
New Shelf Space Ft 51.5 18.5 13.5 17.5
New Revenue/Shel Rs./ft 2050.573981 2065.709189 2063.371852 2086.395429
Kanchi Silk - Double the space would make the shelf look almost empty
Cotton & Materials - Halfing the space would make it would look cumbersom
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Unit Kanchipuram Silk Benaras Silk Embroidery
Category Role Destination Speciality Speciality
Purchase Decision Hierarchy Flagship Cash Machines Grow Margin
Average Purchase price $ 123.08 110.58 112.5
Average Sale Price $ 162.97 146.42 148.96
Inventory Pieces 970 415 286
Monthly quantity sold Pieces 648 261 187Shelf space allocated Ft 25 20 15
Time spent by sales per No of hrs 3 1 1
Payment terms for vend Days 30 90 45
Sales Cost for a
product $ 2.335858586 0.778619529 0.778619529
Utility Apportionment
based on Shelf Space $
749.36 599.488 449.616
Utility Apportionment
/ piece$ 1.156419753 2.296888889 2.404363636
New Avg Sale Price $ 126.5722783 113.6555084 115.6829832
New Sale Price $ 167.5816965 150.4798931 153.1642697
New Revenue $ 108592.9393 39275.25211 28641.71844
New P & L
Revenue 269846.9235
Cost 192363.75
Contribution 77483.1735
Expenses 32692.33333
Profit 44790.84017
Profit/Revenu 0.165986106
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Salary Annual Salary
Sales Staff 30 1850
Admin 3 2350
Others 2 1200
125 Cost of labor per day
Cost of labor per hour
Utilities Pro rata Apportioning
Cost 112404
Per day cost 3746.8
Apportioning based on Shelf space
269846.9235
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55500
7050
2400 Year
64950 264
Labor hrs / day7.007575758 9
0.778619529 Total Labor Hrs
2376
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Unit Kanchipuram Silk Benaras Silk Embroidery
Category Role Destination Speciality Speciality
Purchase Decision Hierarchy Flagship Cash Machines Grow Margin
Average Purchase price $ 123.08 110.58 112.5
Average Sale Price $ 162.97 146.42 148.96
Inventory Pieces 970 415 286
Monthly quantity sold Pieces 770 261 187Shelf space allocated Ft 29.75 20 15
Time spent by sales person No of hrs 3 1 1
Payment terms for vendors Days 30 90 45
Monthly Revenue $ 125486.9 38215.62 27855.52
Monthly Purchase Cost $ 94771.6 28861.38 21037.5
Absolute margin $ 39.89 35.84 36.46
Total Margin $ 30715.3 9354.24 6818.02
Margin % % 32.4 32.4 32.4
Stock unsold Pieces 200 154 99
% shelf space allocated % 23.8 16 12
Inventory Turnover Ratio Days 37.79220779 47.70114943 45.88235294
Avg Accounts Payable $ 94771.6 9620.46 14025
Revenue/ Shelf space $/ ft 4218.047059 1910.781 1857.034667
Abs Margin/ Shelf space $/ ft 1032.447059 467.712 454.5346667
GMROF $/ft 1366.647247 619.093044 601.679232
GMROI $/ft 1032.1344 467.554356 454.41GMROL $/hr
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Cotton Ready to stitch Materials
Routine Convenience Convenience
Cash Machines Grow Margin Core Traffic
14.23 12.98 4.81
18.84 17.19 6.37 Kanchi Units Inc
2860 2222 4650 0.188271605
1938 1435 322930.25 10 20 125
1 0.5 1.5
15 15 30
36511.92 24667.65 20568.73 273306.34
27577.74 18626.3 15531.49 206406.01
4.61 4.21 1.56
8934.18 6041.35 5037.24
32.4 32.4 32.4
922 787 1421
24.2 8 16
44.27244582 46.45296167 43.20222979
55155.48 37252.6 15531.49 226356.63
1207.00562 2466.765 1028.4365 2186.45072
295.3447934 604.135 251.862
391.0698208 799.23186 333.213426
295.3781078 603.49212 251.610138
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